MIS
CHAPTER 1
INFORMATION SYSTEMS:
AN OVERVIEW
TJX Credit Card Breach
Fed Ex
Cyrus
NFL Coaches
Hossein BIDGOLI
Chapter 1 Information Systems: An Overview
learning outcomes
LO1
Discuss common applications of computers and
information systems.
LO2
Explain the differences between computer literacy
and information literacy.
LO3
Define transaction processing systems and
management information systems.
LO4
Describe the four major components of an
information system.
LO5
Discuss the differences between data and
information.
Chapter 1 Information Systems: An Overview
l e a r n i n g o u t c o m e s (cont’d.)
LO6
Explain the importance and applications of
information systems in functional areas of a
business.
LO7
Discuss how information technologies are used to
gain a competitive advantage.
LO8
Explain the Five Forces Model and strategies for
gaining a competitive advantage.
LO9
Summarize the future outlook of information
systems.
Accounting
Finance
Marketing
HR
Operations
• Use IS more than any other non IS field
• Access to funds
• Where to invest ----Can be heavily analytical
• Sales force automation SFA
• Geographic IS
CRM
• HRM , payroll, benefits
• SCM
• CAD/CAM
• Intranets
Media & Communications
• Digital rights management systems
1-4
What is a system?
5

Combinations of hardware, software, and telecommunications
networks that people build and use to collect, create and
distribute useful data, typically in organizational settings.
Control of System Performance
Input of
Data
Resources
Processing
Data
Output of
Information
Products
Storage of Data Resources
6
Knowledge Worker
1960
2000
Knowledge Worker (Peter Drucker 1959)
• Professionals that create, modify and/or synthesize information as a
fundamental part of their job
• They will require higher education levels and received higher
compensation than workers in agriculture or manufacturing
• At least 35% of all workers in Canada are knowledge workers
As a knowledge worker of the future, computers and
information technology will help you be more effective
and productive, no matter what profession you
choose.
1-7

Computers and information systems are all
around you
◦
◦
◦
◦
◦

Online classes
Grading
Grocery and retail
PDA and smartphones
Internet
“Information systems” versus “information
technology”


January 2007
Identity thieves stole more than 46.5 million
credit cards
◦ Used sophisticated hacking techniques to break
through security systems
◦ Stored the stolen information on servers in Eastern
Europe and the United States

Shows the international nature of cybercrime
TJX Credit Card Breach
•
Computer literacy
◦ Having skills in using productivity software
•
Information literacy
◦ Understanding the role of information in generating
and using business intelligence
•
Business intelligence (BI)
◦ Provides historical, current, and predictive views of
business operations and environments
◦ Gives organizations a competitive advantage in the
marketplace
•
Transaction processing systems (TPSs)
◦
◦
◦
◦
Focus on data collection and processing,
Cost reduction
Operations repetitive
Human involvement minimal
Fed Ex
•
Management information system (MIS)
◦ Organized integration of hardware and software
technologies, data, processes, and human elements
◦ Designed to produce timely, integrated, relevant,
accurate, and useful information
 For decision-making purposes

Include:
◦ Hardware components
◦ MIS software
◦ Processes

Designing an MIS
◦ Define objectives
◦ Collect and analyze data
◦ Provide information in useful format


Used in both the private and public sect
Many organizations use information systems
to gain a competitive advantage




Data
Database
Process
Information
•
Data
◦ Input to the system

Sources of data
◦ External
◦ Internal


414712905
SIN 414-712-905
Time orientation
Can be collected in different forms
◦ Aggregated
◦ Disaggregated
ATM

Database
◦ Heart of an information system
◦ Collection of all relevant data organized in a series
of integrated files



Essential for the success of any information
system
Managed with database management system
(DBMS): e.g., Oracle
Reduces personnel time needed to gather,
process, and interpret data manually

Process
◦ Generates the most useful type of information for
decision making


Generally includes transaction-processing
reports and models for decision analysis
Includes a wide range of models to support
all levels of decision making

Information
◦ Output of an information system
◦ Facts that have been analyzed by the process
component

Quality of information
◦
◦
◦
◦
Timeliness
Integration with other data and information
Consistency and accuracy
Relevance

User interface
◦ Must be flexible and easy to use
◦ Graphical user interfaces (GUIs)

Ultimate goal of an information system
◦ Generate business intelligence (BI)

a university
◦ The university stores all student data in a database
◦ Built-in query capability
◦ Other types of analysis can be done






1. Increase employee productivity by reducing time,
errors and costs using
2. Enhance decision making
3. Improve team collaboration
4. Create business partnerships and alliances
5. Enable global reach all over the world taking into
consideration the culture of each nation or society.
6. Facilitate organizational transformation as the
organization evolves and responds to the ever-changing
marketplace.
21

Information technologies
◦ Achieve goals of information systems

Examples
◦
◦
◦
◦
Internet
Databases
POS Systems
RFID tags

POS system
◦ Fast customer service
◦ Improved inventory management

Wireless network
◦ Efficient in-store communication

Web site
◦ Communicate with customers
◦ Increase sales with online orders

RFID tags
◦ Better manage inventory

Information
◦ Second most important resource in any
organization

Four Ms of resources:
◦
◦
◦
◦
Manpower >> Personnel info system
Machinery >> Manufacturing Info System
Materials >> Logistics info system
Money >> Financial Info system
1831
Cyrus McCormick
Competitive advantage
Significant, long-term benefit to a company over
its competition
Ability to establish and maintain a competitive
advantage is vital to a company’s success
NFL Coaches
NFL Coaches
•
•
•
What sources of competitive advantage
can you identify the New England
Patriots have by using information
technology?
Are these long term, sustainable
competitive advantages?
From our list of Roles and goals of
Technology, what does the IS of the NFL
do?
26

Michael Porter
◦ Professor at Harvard Business School
◦ Identified three strategies for competing in the
marketplace successfully



Overall cost leadership
Differentiation
Focus

Five Forces Model
◦ Michael Porter
◦ For analyzing an organization, its position in the
marketplace, and how information systems could
be used to make it more competitive

How IS can have a factor in the industry
30







Chief Technology Officer
Manager of Info System Services
Systems Analyst
Network Administrator
Database Administrator
Computer Programmer
Webmaster

Hardware and software costs continue to
decline
◦ Processing information less expensive in the future




Artificial intelligence and related technologies
will continue to improve and expand
Computer literacy will improve
Networking technology will improve
Personal computers will continue to improve
in power and quality


Internet growth and acceptance will continue
Computer criminals will become more
sophisticated
◦ Protecting personal identity information will
become more difficult



Examples of uses for computers and
information systems
Difference between computer literacy and
information literacy
Management information system (MIS)
◦ Data, database, process, and information

Porter
◦ Three competitive strategies
◦ Five Forces Model